The Andean Community Southern Common Market

INTERNATIONAL ORGANIZA TlONS Headquarters: calle Cebollati 1461, Casilla de Correo 577, 11000 Montevideo, Uruguay.

THE ANDEAN COMMUNITY On 26 May 1969, an agreement was signed by Bolivia, Chile, Colombia, Ecuador and Peru establishing the Cartagena Agreement (also referred to as the Andean Pact or the Andean Group). Chile withdrew from the Group in 1976. Venezuela, which was initially actively involved, did not sign the agreement until 1973. In 1997, Peru announced its withdrawal for 5 years; and Panama joined. The Act of Caracas signed at the Group's 5th meeting in May 1991 established a free trade zone between member states to come into effect on I Feb. 1993 as the first step towards the creation of a common market. Bolivia, Colombia, Ecuador and Venezuela have fully liberalized the trade among them, while Peru is still implementing its liberalization process, due to end by 2005. A Common External Tarifffor imports from third countries has been in etfect since Feb. I, 1995. In March 1996 at the Group's 8th summit in Trujillo in Peru, member countries (Bolivia, Colombia, Ecuador, Peru, Venezuela) signed areform protocol to the Agreement, according to which the Group would be superseded by the Andean Community, in order to promote greater economic, commercial and political integration between member countries under a new Andean Integration System (SAI). Organization. The Andean Presidential Council, composed of the presidents of the Member States, is the highest-Ievel body of the Andean Integration System (SAI). The Commission and the Andean Council of Foreign Ministers are legislative bodies. The General Secretariat is the executive body and the Andean Parliament is the deliberative body of the SAI. The Court of Justice, which began operating in 1984, resolves disputes between members and interprets legislation. The SAI has other institutions: Andean Development Corporation (CAF), Latin American Reserve Fund (FLAR), Simon Bolivar Andean University, Andean Business Advisory Council, Andean Labour Advisory Council and various Social Agreements.

Headquarters: Avda Paseo de la Republica 3895, San Isidro, Lima 17, Peru. Website: http://www.comunidadandina.org e-mail: [email protected] Secretary-General: Sebastian Alegrett.

SOUTHERN COMMON MARKET (MERCOSUR) Founded in March 1991 by the Treaty of Asunci6n between Argentina, Brazil, Paraguay and Uruguay, the treaty committed the signatories to the progressive reduction of tariffs culminating in the formation of a common market on 1 Jan. 1995. This duly came into effect as a free trade zone affecting 90% of commodities. A common external tariff averaging 14% applies to 80% of trade with countries outside Mercosur. Details were agreed at foreign minister level by the Protocol of Ouro Preto signed on 17 Dec. 1994. In 1996, Chile negotiated a free-trade agreement with Mercosur wh ich came into effect on I üct. Two weeks later, Bolivia signed the same. In Dec. that year, an agreement conferring associate membership on Bolivia was also endorsed.